New VCs often rush to make deals to prove themselves, but this leads to a portfolio of mediocre companies. These investments consume a disproportionate amount of time and energy, leaving no bandwidth to pursue the truly exceptional, career-making opportunities that may appear later.
Resist the common trend of chasing popular deals. Instead, invest years in deeply understanding a specific, narrow sector. This specialized expertise allows you to make smarter investment decisions, add unique value to companies, and potentially secure better deal pricing when opportunities eventually arise.
New investors should prioritize building a network that aligns with their fund's specific investment thesis. Generic networking is inefficient; focus on cultivating relationships with individuals who fit the fund's "ideal customer profile" to generate high-quality deal flow, as 80% of funded deals can come from this source.